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Shampoo Pricing

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4/14/12Market analysis with reference to Income

of consumers and price of shampoo:

Low income group consumer:

Price elasticity of demand of shampoo for low

income group is highest. Low income group peoples are most price sensitive

Clinic Plus shampoo by Hindustan Unilever Limitedis the most successful brand in penetrating andtapping this large market.

Prices of clinic plus are the most competitiveagainst quality. Peoples are more comfortable withthis brand compared with other brands.

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The success lies mainly in wise promotion andpricing strategy.

An advertisement using common man at the centreis the key for their promotion. That is the reasonwhy peoples in low income group are able to relate

themselves with the brand.

Clinic Plus provided shampoos with wide pricingoptions like two rupees, one rupees and even fiftyPaisa per sachet. This caters to the need of peoples

with low income group.

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Higher Income Group:

This group is the least price sensitive among abovegroups.

They have specific brand preferences. They stick totheir brand for longer time unless they find someother extremely competitive product.

In other words brand loyalty in case of this group ishighest.

They want higher quality and price is not much of

concern to them.

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Analysis of shampoo usage andprice paid:

Serial no. AGE SEX BRAND HOWMANY

TIMES INA WEEK

Approximate

quantityused permonth(in

ml) -Q

Approximate

amountspent permonth(inRs.) - P

male-4ml/female-6ml per

use

Q*(per mlprice)

1 16-20 M Head And

Shoulders

4 64 41.6

2 21-25 F Pantene 2 48 25.923 21-25 F Dove 2 48 24.964 26-30 F Clinic Plus 2 48 24.965 21-25 F Pantene 2 48 25.926 21-25 F Dove 2 48 24.967 21-25 F Dove 3 72 37.448 21-25 F Ayur 2 48 16.89 16-20 F Dove 2 48 24.96

10 21-25 M Garnier 1 16 8.3211 21-25 F Dove 2 48 24.9612 26-30 F Pantene 2 TO 3 72 38.8813 26-30 F Pantene 3 72 38.8814 21-25 F Dove 2 48 24.9615 26-30 M Clinic Plus 3 48 24.9616 21-25 F Sunsilk 2 48 29.7617 21-25 F Pantene 3 72 38.8818 21-25 F Clinic Plus 3 72 37.4419 26-30 F Sunsilk 2 TO 3 72 44.64

20 21-25 FHead And

2 48 31.2

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The total quantity of shampoo used per month byconsumers varies anywhere between 16ml (when

frequency of usage is once per week) to 96ml(when frequency of use is 4 times a week).

Accordingly, amount spent on shampoo per personper month varies between 8 rupees (minimum) to

96 rupees (maximum). From the table we can see that frequency of use of

shampoo is more in case of female than male.

Approximate amount spent on shampoo per month

by female is higher (30.73 Rupees) than in male(21.74 Rupees).

Thus pricing and promotion strategies of shampooare to be carried out mainly by considering female

consumers. Because it is the vital section for